Thursday, January 24, 2013
Brazilian Automotive History
The Brazilian Automotive history started in the early years of the 1900's, however, most cars were assembled in Sao Paulo and Rio with imported parts, Ford was one of the first car factories in Brazil in the beginning of the 20th century, mostly with imported parts.
Until the 1940's when the first 100% National Parts Car Factories popped up around Brazil.
One in Rio de Janeiro, the Fabrica Nacional de Motores, a subsidiary of the Italian Alfa-Romeo, and then Wyllis Overland (Jeep) and Mercedes-Benz, both in my hometown of Sao Bernardo do Campo, right on the outskirts of Sao Paulo.
It amazed to learn on the versatility of the JEEP, it was used for everything, I love their SUV of the day, they were used for all sorts of Agricultural applications, Ambulance, Police, you name it.
The video is only about 10 minutes long, and it's narrated by a Brazilian who speaks English very well, however, you can tell his Brazilian accent.
The Jeep had a fundamental part in the vast interiors or Brazil, it was a versatile 4 Wheel Drive, with 100% Brazilian made and very affordable parts and also of easy maintenance.
The Brazilian automotive industry today has come a long way, cars made in Brazil have, by law, to have 70% of parts MADE IN BRAZIL, or they have to pay imported car tax, and the government is looking to raising that limit to 90% in the next few years.
Brazil today already has the largest number of car factories anywhere in the world. Ford has it's largest and most modern car factory in the world at the state of Bahia, with it's own harbor and has a great capacity to produce and ship cars all over the world, economically and efficiently.
It is also very profitable to produce cars in Brazil, the highest profit margins of any country, a paradise for business people, not so fun for the consumer, who ends up paying a ridiculous price for small (crappy if you ask me) cars. Taxes are also a good portion of the high price of cars in Brazil, but the manufactures profit margin is also abusive.
There are pressures from the people to adequate the car prices to a more realistic level.
I personally think it will take a few years for the industry to actually lower their prices in Brazil, if they do it at all. Let's hope for the best
Meanwhile, enjoy this short movie in English and learn a little bit more about Brazil.
PS: There is also Video's number 1 and 2 on the Brazilian Automotive History, but they are both in Portuguese, hence my choice the number 3 video of this series (#3 is in English).